The process of producing trading signals (buy/sell alerts) based on algorithmic analysis. A “signal” is a trigger to take action (enter or exit). Signal generation logic can range from simple rule-based (e.g. moving average crossovers) to complex quantitative models. According to industry terminology, “signal generation refers to the creation and transmission of a trade signal… generated by various forms of investment analysis”. In a Forex EA, signal generation is the core of entry/exit logic: whenever the programmed conditions evaluate to true, the EA considers it a signal.

• Definition: Creation of trade triggers from market analysis. Examples include “generate a buy signal when Bollinger band break occurs and RSI confirms momentum.”

• Context: In code, a signal is typically a Boolean condition. For example, bool buySignal = (Close > SMA(10) && RSI < 30); Then the EA checks if buySignal is true to enter a trade.

• Example (conceptual):

  bool buySignal = (iLow(Symbol(),0,0) < iLow(Symbol(),0,1) && iRSI(Symbol(),0,14,PRICE_CLOSE,0) > 70);
if(buySignal)
OrderSend(...);


  Here the EA “generates” a buy signal when today’s low breaks yesterday’s low and RSI is high, for instance. Signal generation is essentially what the entry/exit logic calculates each tick.

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